Increasing conflicts around the world and border skirmishes are prompting governments to increase their budget allocation for the defence sector, primarily to obtain advanced equipment and develop infrastructure to face unforeseen situations.
The Government of India on Tuesday presented its Budget for the financial year 2024-25, which allocated a 12.9 per cent share of the total Budget for defence. But where does India stand against China and Pakistan in terms of its defence Budget? Let's take a look.
India's defence budget for this year has been increased to ₹6.21 lakh crore (approximately US $75 Billion), up from last year's outlay of ₹5.94 lakh crore.
27.66 per cent: For planned Capital acquisitions
14.82 per cent: Revenue expenditure (on sustenance and operational preparedness)
30.66 per cent: Pay and Allowances
22.70 per cent: For Defence pensions
4.17 per cent: For civil organisations under the Ministry of Defence.
According to Ministry of Defence, the enhanced budgetary allocation will fulfil the requirement of annual cash outgo on planned Capital acquisitions aimed at equipping the Armed forces with state-of-the-art niche technology, lethal weapons, fighter aircraft, ships, submarines, platforms, unmanned aerial vehicles, drones, specialist vehicles etc.
In 2024, China has increased defence budget by 7.2 per cent compared to last year. In March, China announced a defence budget draft worth 1.66554 trillion yuan ($231.36 billion). China has seen an increase in defence budget for nine consecutive years since 2015, despite slowdown in economy.
In Budget 2024-25, Pakistan earmarked ₹2,122 billion for the armed forces in 2024, an increase of 17.6 percent compared to last year’s budget. A report said that the boost in defence spending is the second-largest in six years.
However, according to Dawn News, major military acquisitions and funding for nuclear weapons and missile programmes are believed to be financed through separate channels hidden under a classified budget line.
